Ohio National Extends Buyout Offer over Controversial Variable Annuity Trailing Commissions
February 26, 2019 by Alex Padalka
Amid a flurry of lawsuits over its decision to stop paying trailing commissions on some of its variable annuities, Ohio National Life Insurance Company is giving broker-dealers and registered representatives another month to consider its buyout offer, according to news reports.
Late last year, the annuity insurer announced it would stop paying trailing commissionson variable annuity contracts with guaranteed minimum income benefit riders in December.
At the time, Ohio National gave brokers the choice of surrendering or exchanging their contracts for extra cash, InvestmentNews writes. That offer was originally available from Nov. 12 to Feb. 11, but Ohio National has extended it to March 15, according to an SEC filing cited by the publication.
“This offer may provide an option to our contract owners that better fits their needs today,” Ohio National spokeswoman Angela Meehan tells InvestmentNews. “Extending the offer date gives them additional time, if needed, to make that determination.”
Click HERE to read the full story via Financial Advisor IQ.
